Action Taken: Directed staff to work with City Attorney and City Coordinator staff to create a process for the City Council to examine the Charter changes recommended by the Charter Commission per introduction by Council Member Ostrow.

Intergovernmental Relations

2. State/Local Fiscal Relations:

Report on policy alternatives for the state/local fiscal relationship as part of report back on direction to staff which read as follows: "IGR and Finance Department staff are directed to answer the following informational requests regarding the state/municipal fiscal relationship and report back to the IGR Committee at its 3/3/2009 meeting. Information should include: 1) The City of Minneapolis’ LGA appropriation as compared to the total LGA appropriation from 1998 – 2009; and 2) Data regarding sales tax, income tax and property tax generated within the City of Minneapolis from 1998 – 2009, being aware of the limitations of revenue and tax data collected by the Minnesota Department of Revenue and identifying separately the Convention Center sales tax. B) Based on the information above staff is directed to generate policy alternatives to the current state/local government fiscal relationship. Alternatives should include, but aren’t limited to, consideration of: 1) Replacing the LGA program statewide and allow participating cities to retain all or part of the sales tax revenue within their boundaries; and 2) Replacing or limiting Minneapolis’ part of the LGA program and allow Minneapolis to keep all or part of its sales tax revenue from within its boundaries."